
The
Netherlands and Denmark have signed a
treaty for the avoidance of double taxation in
1996, but the
document became applicable 3 years later, in
1999. The
convention was established in order to
eliminate the double taxation of persons and legal entities that are
tax residents of the two countries. It takes into consideration a set of
income taxes, which can be detailed by
our team of accountants in Netherlands.
What are the taxes covered by the Netherlands – Denmark treaty?
The
treaty for the avoidance of double taxation signed by
Netherlands and Denmark takes into consideration a set of
taxes, which are stipulated by the
Article 2 of the agreement.
Our accounting firm in Netherlands can assist on the manner in which the below mentioned
taxes are imposed to
Dutch and Danish tax residents:
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• the convention is applicable to taxes on income and the taxes on capital available in both contracting states;
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• the treaty takes into consideration the taxes applicable to the total income, as well as on parts of income, which also refer to the income obtained from movable or immovable property;
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• under the provisions of the treaty, the Netherlands applies the income tax, the wages tax, the company tax, the dividend tax and the capital tax;
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• in Denmark, the following taxes are applicable: the income tax to the state, the municipal income tax, the county municipalities income tax, the church tax, the tax on dividends, the tax on interest, the tax on royalties and the taxes applicable under the Hydrocarbon Tax Act.
When is a Danish company taxed in the Netherlands?
A
Danish company that operates in the
Netherlands will be
taxed in this country if it carries its business operations through a
permanent establishment. A
permanent establishment refers to a wide category of business establishments, such as a
branch office, an office, a factory, a workshop, but it also takes into consideration
construction projects which are carried on the
Dutch territory for a continuous period of
at least 12 months.
The term
permanent establishment refers to other types of business activities that can be carried out by
Danish tax residents, as prescribed by the
Article 5 of the treaty. Persons interested in receiving
tax assistance on the
provisions of the agreement are invited to
contact our Dutch accountants for further details.